3 Segment Information

Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance.

Due to an internal reorganisation with effect from 1 January 2011 the composition of the reportable segments changed. “Insurance Other” has been renamed as “Insurance International” and now comprises all the cross- border insurance operations in one division. Payment protection insurance now operates on a run-off basis and is included in the segment “Other”. The corresponding information for the statement of income for the six months ended 30 June 2010 and the balance sheet as at 31 December 2010 was restated.

The accounting policies for the segments are the same as those described in the Summary of Significant Accounting Policies section. Inter-segmental services and transfers of assets and liabilities are treated as if the transactions were with third parties, i.e. at market prices applicable at the time of the transaction.

Corporate costs were not allocated to the individual segments as they consist of general administrative expenses and head office expenses that relate to the Swiss Life Group as a whole.

The reportable segments have been identified based on information about the components of the entity that management uses to make decisions about operating matters.

The information provided to management focuses on product lines and services. The organisational and management structure within the insurance business is geographical. The reportable segments have therefore been identified as follows:

Insurance Switzerland
Insurance France
Insurance Germany
Insurance International
Investment Management

The insurance segments primarily consist of life insurance operations. These operations offer a broad range of life, pension, annuity and investment-type policies to both groups and individuals, including disability coverage. The Group’s strategy focuses primarily on life and pensions in Switzerland, France and Germany and on cross-border business from Liechtenstein, Luxembourg, Austria, Singapore and Dubai. The insurance segments also include a number of companies which hold investments primarily pertaining to life insurance.

“Insurance International” comprises the cross-border insurance operations in Liechtenstein, Luxembourg, Austria, Singapore and Dubai.

Non-life operations involve operations in France and Luxembourg and mainly include property and casualty, liability and motor insurance, accident and health insurance, and payment protection insurance. These operations are included in the segments “Insurance France” and “Other”.

“Investment Management” refers to the management of assets for institutional clients and the Group’s insurance business, as well as the provision of expert advice for such clients.

“AWD” comprises the Hanover-based AWD Group, which was acquired by the Swiss Life Group on 19 March 2008. The AWD Group specialises in personal and holistic financial planning for medium and high-income customer segments.

“Other” refers principally to various finance and service companies, as well as payment protection insurance.

The statement of income and the balance sheet for the segments are provided in the following pages:

Premiums and policy fees from external customers
In CHF million  
  Net earned premiums Net earned policy fees
  2011 HY 2010 HY 2011 HY 2010 HY
Individual life
  1 760 1 948 142 139
Group life
  5 650 5 290 4 5
Total life
  7 410 7 238 146 144
Accident and health
  7 7
Property, casualty and other
  193 207
Total non-life
  200 214
  7 610 7 452 146 144